PropertyGuru exemplifies the formidable challenges that Southeast Asia's unicorns face when they step into the global financial markets. International investors don't always appreciate local success, but Southeast Asian companies lack viable alternatives closer to home.
Southeast Asian companies on the Nasdaq have had a dismal performance, with a median price decline of 80%. That makes it impossible to raise new capital, given depressed valuations and loss of investor interest.
Despite its strong market presence in Southeast Asia, PropertyGuru struggled to leverage the extensive capital opportunities promised by the U.S. market. Why would foreign small cap stocks gain traction among U.S. investors, who can pick among many larger and familiar names?
Southeast Asia's dependence on U.S. exchanges is a symptom of a deeper problem in the region's capital markets: Low trading volumes. The aggregate average daily trading volume of the six major Southeast Asian exchanges is just $5 billion.
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